The introduction of the provisions gives the remunerations
committee “the ability to reduce or cancel unvested long-term
incentive plan awards and to recover vested long-term incentive
plan awards in certain circumstances,” London-based Rio said
today in its annual report. Awards under its performance share
plan can be retrieved “in the event of gross misconduct.”

Former CEO Tom Albanese left the group in January, forgoing
his bonus for a third straight year after failed deals in
aluminum and coal. Companies in Britain and the U.S. have faced
mounting pressure to curb executive remuneration amid an
investor revolt dubbed “the shareholder spring.”

Rio Chairman Jan du Plessis said in July that companies
need to be more responsive to views of shareholders on executive
pay.

“It is absolutely clear that the spiral in executive
remuneration that we have seen over the last two decades simply
cannot continue,” Du Plessis said in a July 4 speech in London.

Albanese was replaced by Sam Walsh, the 63-year-old head of
Rio’s iron-ore unit. Walsh will earn a basic salary of A$1.9
million ($2 million) for 2013, a 15 percent increase on last
year’s pay.

Rio also said today that it’s “strengthening the alignment
of executives’ interests with those of shareholders.” It’s
raising the executive shareholding guidelines from two to four
times base salary for the CEO and from two to three times for
the other executives.